Douglas W. Thompson, Chief Operations Officer at CAVA Group, Inc. (CAVA -1.48%), reported a purchase of 6,500 shares of common stock on Aug. 31, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$432,000Shares purchased6,500Post-transaction shares (directly held)19,371Post-transaction value$1.27 millionTransaction value based on SEC Form 4 weighted average purchase price ($66.52); post-transaction value based on Aug. 31, 2026, market close ($65.75).
Key questionsWhat is the significance of this purchase relative to the executive's prior position?
Thompson expanded his direct capital commitment to the firm by 51% in this transaction. This move increased his direct ownership from 12,871 shares to 19,371 shares.How does the acquisition price relate to the stock's recent performance?
The shares were purchased at $66.52 per share on Aug. 31, 2026, while the stock's one-year return was -3% as of the transaction date. As of the Sept. 1, 2026 market close, shares were priced at $61.08.Does the insider maintain other forms of equity exposure in the company?
The reported direct holdings include unvested restricted stock units. Thompson also holds derivative securities, providing an additional economic interest in the company's long-term performance beyond his current common stock position.Company OverviewMetricValueShare Price (as of market close 2026-09-01)$61.08Market Capitalization$7.3 billionRevenue (TTM)$1.4 billionNet Income (TTM)$66.3 millionCompany SnapshotCAVA Group operates a chain of Mediterranean restaurants that offer customizable salads, savory dips, spreads, toppings, and distinctive dressings, with products distributed through Whole Foods and other grocery retailers, complemented by online food-ordering services.The company generates revenue through direct restaurant operations, retail product distribution partnerships, and digital ordering channels, leveraging a vertically integrated supply chain to support its Mediterranean-focused culinary platform.CAVA targets health-conscious consumers seeking fresh, customizable Mediterranean cuisine through both dine-in and off-premise channels, including grocery retail partnerships and digital delivery platforms.CAVA Group, Inc. operates as a leading Mediterranean restaurant chain with approximately 13,480 employees and a strong market presence across multiple distribution channels. The company has established a differentiated business model that combines company-operated restaurants with retail product distribution, positioning itself at the intersection of fast-casual dining and packaged-food retail. With TTM revenue of $1.4 billion and net income of $66.3 million, CAVA demonstrates operational scale and profitability within the competitive casual dining sector.
What this transaction means for investorsSome insider transactions can be complex, making it difficult to determine what opinion an executive might actually hold over the company in question. However, there is one type of insider trade that is fairly unambiguous: An insider buy. When insiders purchase stock and put more of their own wealth on the line, they are doing so because they believe the stock is a bargain. With that in mind, let's take a closer look at CAVA stock, which recently saw one such transaction.
To start, let's review the stock's recent performance. Since 2023, CAVA stock has generated a total return of 39%, equating to a compound annual growth rate (CAGR) of 10.7%. It has underperformed the S&P 500, which has delivered a total return of 81%, with a CAGR of 20.3% over the same period.
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As for fundamentals, CAVA has several strong metrics working in its favor. For one, revenue has soared from less than $600 million in 2022 to over $1.37 billion today. Year-over-year revenue growth has averaged 27% since 2022, and it currently stands at 31%. What's more, the company still has plenty of room to grow, with about 475 locations and plans to add approximately 75 stores in the year ahead.
However, there are concerns, too. First off, profits remain modest. In turn, the stock sports a price-to-earnings (P/E) multiple of 108x. For comparison, Chipotle Mexican Grill, one of CAVA's competitors, has a P/E multiple of only 34x. In addition, some analysts have highlighted CAVA's potential vulnerability to labor and food inflation. With prices rising, the company could face increasing pressure on its margins.
To sum up, CAVA stock paints a mixed picture. On the bullish side, insider buying combined with solid growth points to a stock with plenty of upside. However, these considerations have to be weighed against the stock's lofty valuation and sensitivity to inflation. Nevertheless, CAVA remains a growth stock that investors should keep a close eye on.
Key Takeaways CAVA's 2024 cohort is its strongest-performing vintage, generating double-digit same-store sales.CAVA's new restaurants continue to exceed sales and margin expectations, with productivity above 100%.CAVA targets 75-77 net new restaurants in 2026 as newer vintages strengthen its development outlook. CAVA Group, Inc. (CAVA - Free Report) is seeing strong performance from its newer restaurant vintages as it expands its national footprint. The company’s 2024 restaurant cohort is generating double-digit same-store sales and represents the highest-performing vintage in its portfolio. Based on the performance of that cohort, CAVA expects the 2026 classes to follow a similar maturation pattern.
The strength of newer vintages is important as CAVA increases its restaurant base. The company ended the second quarter of 2026 with 476 restaurants after opening 17 net new locations. New restaurant productivity remained above 100%, while recent openings continued to exceed expectations on both sales and margin performance. Systemwide average unit volumes reached $3.1 million.
New-unit strength has also been broad-based. CAVA reported solid performance across geographies and restaurant formats, including established and emerging markets. The company attributed part of this performance to rising brand awareness and investments aimed at supporting the guest experience and restaurant execution.
The maturation profile of newer restaurants provides additional support to CAVA’s expansion strategy. The company indicated that newer restaurants typically start at high sales levels, moderate during their first year after opening and subsequently rebound toward historical performance.
The 2024 cohort’s double-digit same-store sales performance provides evidence of continued growth as these restaurants mature. CAVA is also incorporating recent performance data into its site-selection models and cash-on-cash return analysis for future openings.
The 2024 cohort therefore provides an important benchmark for CAVA’s future development. Double-digit comps from this vintage, combined with above-100% new restaurant productivity and broad-based market strength, support the company’s current expansion trajectory. CAVA expects to open 75-77 net new restaurants in 2026.
Key Competitors Take Different Paths to Unit GrowthChipotle Mexican Grill, Inc. (CMG - Free Report) is supporting a sizable development pipeline with established new-unit economics. CMG opened 101 restaurants in the second quarter of 2026, including 80 Chipotlanes, and continues to expect approximately 350 openings for the full year. New restaurant productivity has remained near 80%, while second-year cash-on-cash returns are approximately 60%. Despite the higher development pace, the impact of new openings on comparable restaurant sales has remained near 100 basis points, consistent with historical levels. These trends likely support Chipotle’s long-term potential to operate at least 7,000 restaurants across North America.
Sweetgreen, Inc. (SG - Free Report) is taking a more measured approach to restaurant expansion. The company opened four restaurants and closed two in the second quarter, ending the period with 287 locations. Sweetgreen is refining its prototype design, construction costs, market selection and new-unit economics while focusing on rebuilding average unit volumes, restaurant-level cash flow and profitability. SG expects to maintain a conservative development pace in 2027, similar to or slower than 2026, with an emphasis on locations that meet its return thresholds before accelerating growth.
CAVA’s Price Performance, Valuation & EstimatesShares of CAVA have lost 7.4% in the past year compared with the industry’s decline of 8.1%.
CAVA’s Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA stock trades at a forward price-to-sales ratio of 4.21, above the industry’s average of 3.27.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2027 earnings per share (EPS) implies a year-over-year uptick of 34%. The EPS estimates for 2027 have increased in the past 30 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
CAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Deutsche Bank AG bought a new position in CAVA Group, Inc. (NYSE: CAVA) during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 9,050 shares of the company's stock, valued at approximately $710,000. Other institutional investors have also recently bought and
Canada Pension Plan Investment Board purchased a new position in shares of CAVA Group, Inc. (NYSE:CAVA – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund purchased 63,400 shares of the company’s stock, valued at approximately $4,976,000. Canada Pension Plan Investment Board owned 0.05% of CAVA Group at the end of the most recent reporting period.
A number of other institutional investors and hedge funds have also added to or reduced their stakes in CAVA. Castleark Management LLC bought a new stake in shares of CAVA Group in the 2nd quarter valued at about $6,784,000. Nicholas Investment Partners LP acquired a new position in CAVA Group in the 2nd quarter worth $9,408,000. Legal & General Group Plc acquired a new position in shares of CAVA Group during the second quarter worth about $9,743,000. The Manufacturers Life Insurance Company bought a new position in shares of CAVA Group during the 2nd quarter worth approximately $5,719,000. Finally, Algert Global LLC bought a new position in CAVA Group in the second quarter valued at $4,162,000. Institutional investors own 73.15% of the company’s stock.
Analyst Ratings Changes Several research firms have weighed in on CAVA. TD Cowen lowered their price target on CAVA Group from $100.00 to $85.00 and set a “buy” rating on the stock in a research report on Wednesday, August 12th. Robert W. Baird raised shares of CAVA Group to a “strong-buy” rating in a report on Monday, August 24th. DA Davidson lowered their price objective on CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a research report on Thursday, August 13th. Citigroup reiterated a “buy” rating on shares of CAVA Group in a research report on Tuesday, July 28th. Finally, Freedom Capital raised CAVA Group to a “hold” rating in a research note on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, CAVA Group currently has an average rating of “Moderate Buy” and a consensus price target of $89.44.
Check Out Our Latest Analysis on CAVA Group CAVA Group Trading Up 0.2% CAVA Group stock opened at $67.08 on Monday. The stock has a 50-day moving average price of $69.99 and a two-hundred day moving average price of $77.36. CAVA Group, Inc. has a 12 month low of $43.41 and a 12 month high of $98.79. The company has a market capitalization of $7.84 billion, a PE ratio of 121.97, a P/E/G ratio of 4.56 and a beta of 1.75.
CAVA Group (NYSE:CAVA – Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01. The firm had revenue of $368.44 million for the quarter, compared to analyst estimates of $360.09 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The company’s revenue for the quarter was up 31.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.16 EPS. As a group, analysts predict that CAVA Group, Inc. will post 0.54 earnings per share for the current fiscal year.
Insider Buying and Selling In other CAVA Group news, insider Kelly Costanza sold 12,490 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the sale, the insider owned 98,490 shares of the company’s stock, valued at approximately $8,864,100. This represents a 11.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Karen Kochevar sold 10,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $90.00, for a total value of $900,000.00. Following the sale, the director owned 3,074 shares in the company, valued at approximately $276,660. The trade was a 76.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 67,512 shares of company stock valued at $6,050,417 over the last 90 days. 6.70% of the stock is currently owned by corporate insiders.
CAVA Group Company Profile (Free Report)
CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.
Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.
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Key Takeaways CAVA's Q2 same-store sales rose 9%, driven by a 5.3% increase in traffic.CAVA's Q2 Same-store sales recovered to the mid-single-digit range after Cyclospora concerns pressured demand.CAVA maintained 2026 comps guidance of 4.5%-6.5%, supported by loyalty growth and menu innovation. CAVA Group, Inc. (CAVA - Free Report) reported 9% same-store sales growth in the second quarter of 2026, driven by a 5.3% increase in traffic. The traffic-led performance points to solid underlying demand, although broader food-safety concerns created a near-term sales headwind around the end of the quarter and into the third quarter. Concerns surrounding the Cyclospora outbreak affected consumer demand for lettuce and fresh produce, even though CAVA does not source leafy greens from Mexico or serve iceberg lettuce.
Recent sales trends indicate that the pressure has moderated. Same-store sales initially slowed to flat to positive as Cyclospora concerns intensified, but improved each week sequentially and most recently recovered to the mid-single-digit range. CAVA also reported no immediate impact from the recent Salmonella outbreak and does not source from the associated farms. The company continues to monitor food-safety developments through its external Food Safety Advisory Council and existing supply-chain traceability capabilities.
The full-year outlook supports continued comparable-sales growth, although at a more moderate rate than the second-quarter pace. CAVA maintained its 2026 same-store sales growth guidance of 4.5%-6.5%, incorporating the impact experienced to date and a prudent assumption regarding the duration of remaining Cyclospora-related pressure. The low end of the range would imply slightly negative same-store sales in the second half, while the upper end would imply mid-single-digit growth. The company stated that current trends do not indicate performance at the lower end of the range.
Several demand indicators provide additional support. Restaurants in lower-income markets are generating the strongest same-store sales results, while restrained menu-price increases are supporting accessibility. CAVA’s loyalty membership is growing faster than its restaurant base, and Pomegranate Glazed Salmon increased the rate of new customers while driving higher frequency among loyalty members who purchased the product. These trends indicate continued traction across value, customer engagement and menu innovation.
Broader restaurant performance also remains favorable. New restaurant productivity stayed above 100%, with strength across geographies and restaurant formats, while the 2024 cohort is generating double-digit same-store sales. These operating fundamentals support the durability of positive comparable-sales growth despite near-term food-safety concerns.
CAVA’s Price Performance, Valuation & EstimatesCAVA’s shares have gained 6.9% in the past year against the industry’s 6.9% decline. In the same time frame, other industry players like Dutch Bros Inc. (BROS - Free Report) and McDonald's Corporation (MCD - Free Report) have declined 21.8% and 14.1%, respectively.
CAVA’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CAVA trades at a forward price-to-sales (P/S) multiple of 5, above the industry’s average of 3.12. Conversely, industry players, such as Dutch Bros and McDonald's, have P/S multiples of 3.49 and 6.55, respectively.
CAVA’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAVA’s 2026 earnings per share has declined in the past 60 days.
EPS Trend of CAVA Stock
Image Source: Zacks Investment Research
The company is likely to report flat earnings in 2026 on a year-over-year basis. Conversely, industry players such as McDonald’s and Dutch Bros are likely to witness an increase of 5.6% and 27.6%, respectively, year over year in 2026 earnings.
CAVA’s Zacks RankCAVA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Booking: Navigating Seasonal Fluctuations Within a Large Base of Quarterly RevenueBooking (BKNG +2.28%) primarily generates revenue by offering global online reservation services for accommodations, vehicle rentals, flights, vacation packages, and restaurant dining across multiple digital brands aimed at both individual consumers and travel service providers.
While navigating an expanded collective lawsuit from European hospitality associations and updating an organizational restructuring program targeting expense savings, it reported an operating margin of approximately 34% for the quarter ended June 30, 2026.
CAVA: Maintaining a Consistent Upward Trajectory in Total Quarterly RevenueCAVA (CAVA +4.88%) primarily generates revenue by operating a chain of Mediterranean dining establishments and distributing its branded savory dips, spreads, and signature dressings through various grocery retailers and online food ordering services.
It appointed a new director to its board. It launched an internal career development platform to support future hiring initiatives and reported a free cash flow margin of about 8% for the quarter ended July 12, 2026.
Why Tracking Quarterly Revenue Matters for Individual Retail InvestorsRevenue here refers to the standardized income statement revenue line item, and this foundational financial metric matters because it helps investors clearly understand the total amount of money entering the business before accounting for any operating expenses, taxes, or internal administrative costs.
Comparing Quarterly Revenue for Booking and CAVA Over Recent QuartersCalendar quarterBooking RevenueCAVA RevenueQ3 2024$8.0 billion (quarter ended Sept. 30, 2024)$243.8 million (quarter ended Oct. 6, 2024)Q4 2024$5.5 billion (quarter ended Dec. 31, 2024)$227.4 million (quarter ended Dec. 31, 2024)Q1 2025$4.8 billion (quarter ended March 31, 2025)$331.8 million (quarter ended April 20, 2025)Q2 2025$6.8 billion (quarter ended June 30, 2025)$280.6 million (quarter ended July 13, 2025)Q3 2025$9.0 billion (quarter ended Sept. 30, 2025)$292.2 million (quarter ended Oct. 5, 2025)Q4 2025$6.3 billion (quarter ended Dec. 31, 2025)$275.0 million (quarter ended Dec. 28, 2025)Q1 2026$5.5 billion (quarter ended March 31, 2026)$438.3 million (quarter ended April 19, 2026)Q2 2026$7.4 billion (quarter ended June 30, 2026)$368.4 million (quarter ended July 12, 2026)Data source: Company filings. Data as of Aug. 17, 2026.
Foolish TakeBooking is the larger, more established business operating in the massive travel industry. But CAVA's higher revenue growth rate indicates it is a promising emerging restaurant brand worth considering for long-term investors.
Both companies experience mild fluctuations in quarterly revenue, but year over year, they consistently grow revenue. A better way for investors to measure their performance is to use trailing 12-month figures.
On a TTM basis, both companies experience smoother growth curves. Booking reported TTM revenue of $28 billion through the second quarter, rising 13% year over year. CAVA posted TTM revenue of $1.4 billion, up 27%.
Booking is serving a growing travel industry, and it's also currently expanding its addressable market with new offerings through its Connected Trip strategy. This means its revenue will likely continue to expand over the next decade, making it difficult for CAVA to reach it.
Investors will want to watch CAVA's restaurant expansion, as it is early in opening more locations. Its restaurant base is still in the hundreds, and as it scales, its revenue and earnings potential will almost certainly grow.
CAVA Group Inc. (NYSE: CAVA) shareholders should email [email protected] NEW YORK, Aug. 17, 2026 (GLOBE NEWSWIRE) --
What is the Investigation About?
Cava Group founders and board members sold massive quantities of stock while concealing deteriorating business fundamentals.
Entities tied to Belgian billionaire Eric Wittouck offloaded nearly $1.8 billion in shares, while other company insiders and directors sold approximately $500 million more. Of that insider total, roughly $330 million is linked to co-founder Ronald Shaich. All of these sales occurred between August 2024 and March 2025, a window that ended right before Cava began making corrective disclosures about its slowing performance.
Cava’s leadership may have been aware the company’s growth trajectory was faltering due to broader fast-casual industry headwinds, but continued projecting strength to the market. The corrective disclosures came in February and March 2025, when the company began acknowledging that its post-IPO growth was decelerating. By then, insiders had already completed their selling spree.
If you own CAVA Group Inc. (NYSE: CAVA) securities, please contact Fletcher Moore at [email protected].
You may be able to seek monetary damages, corporate governance reforms, reimbursement to the company, and a court approved incentive award at no cost to you whatsoever. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
MOORE LAW PLLC
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New York, NY 10005 [email protected]
www.fmoorelaw.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7546cca8-ccd3-49d8-9075-0698e254e309
Key Takeaways CAVA gained 19.2% in a week as fresh earnings results sharpen focus on its operating momentum.CAVA's revenue rose 31.3%, EPS topped estimates, traffic grew 5.3%, and 17 net new restaurants opened.CAVA's 5.17 forward P/S ratio remains a premium, while restaurant-level margins fell 60 basis points. CAVA Group, Inc. (CAVA - Free Report) shares gained 19.22% in the past week, putting fresh attention on whether operating momentum can keep pace with investor expectations.
The move should not be assigned to any single development. CAVA's latest earnings, traffic, restaurant expansion and valuation instead provide a framework for judging whether the recent price strength is supported by business performance.
CAVA's 19.2% Jump Meets a Fresh Earnings BeatCAVA reported fiscal second-quarter 2026 earnings of $0.19 per share, up from $0.16 a year earlier and 5.6% above the Zacks Consensus Estimate of $0.18. Total revenues increased 31.3% year over year to $368.44 million and topped the consensus mark of $353 million by 4.4%.
Those results add fundamental context to the stock's one-week advance. They show that sales and earnings improved sharply in the quarter, but they do not establish that the earnings report caused the share-price move.
CAVA Traffic and Unit Growth Reinforce MomentumSame-restaurant sales rose 9%, with guest traffic contributing 5.3% and menu price and product mix adding 3.7 percentage points. Average unit volume increased to $3.09 million from $2.94 million a year earlier.
CAVA opened 17 net new restaurants and ended the quarter with 476 locations, up 19.6% year over year. New restaurant productivity remained above 100%, and the company reaffirmed its fiscal 2026 plan for 75-77 net new openings.
CAVA Margins Reveal the Cost of Growth InvestmentsRestaurant-level profit increased 28.1% year over year to $93.81 million, but restaurant-level profit margin declined 60 basis points to 25.7%. Higher sales therefore produced more restaurant-level profit dollars without preventing margin compression.
Food, beverage and packaging costs rose 50 basis points to 30% of CAVA revenues, largely because of salmon input costs. Labor costs increased 30 basis points to 25.3% as CAVA made an incremental 3% wage investment, while other operating expenses rose 40 basis points to 12.8% on a higher third-party delivery mix.
CAVA's Premium Valuation Raises the BarCAVA trades at a forward 12-month price-to-sales ratio of 5.17, versus 3.16 for its Zacks sub-industry and 1.51 for the broader Zacks sector. The multiple is below CAVA's two-year median of 6.83, but it still represents a sizable premium to both comparison groups.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter 2026 comparable restaurant sales growth of 2.2% and a restaurant-level operating margin of 25.2%. Shake Shack Inc. (SHAK - Free Report) posted same-Shack sales growth of 3.5% and a restaurant-level profit margin of 23.0% in its latest quarter. These peers provide useful operating context, though their concepts and scales differ from CAVA's.
CAVA's Mixed Signals Temper the Momentum CaseThe bottom line is that CAVA's recent stock strength is accompanied by rapid revenue growth, positive traffic and continued unit expansion, while margin pressure and a premium valuation keep the execution bar high.
CAVA currently carries a Zacks Rank #3 (Hold). It also has a Growth Score of A, a Value Score of F, a Momentum Score of F and a VGM Score of D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Growth Score points to favorable growth characteristics under the Zacks Style Score framework. The F grades for Value and Momentum indicate weaker characteristics in those styles, while the VGM Score of D reflects an unfavorable combined profile across value, growth and momentum. Together with the Zacks Rank #3, the scores support a more balanced view of CAVA's near-term prospects rather than a clear-cut signal from the one-week rally alone.
Key Takeaways CAVA's Q2 revenue rose 31.3% and EPS increased 18.8%, both topping consensus estimates.CAVA's 9% same-restaurant sales gain was driven more by 5.3% traffic growth than pricing and mix.CAVA reaffirmed 75-77 openings as rising food, labor and delivery costs pressured restaurant-level margins. CAVA Group, Inc. (CAVA - Free Report) delivered another quarter of rapid growth as restaurant expansion and guest demand supported higher revenues and earnings. Rising food, labor and delivery costs, however, limited margin flow-through.
CAVA also maintained its fiscal 2026 outlook, putting the focus on whether healthy sales trends can offset those pressures as the restaurant base expands.
CAVA's Q2 Beat Shows Demand Is Still HealthyFiscal second-quarter 2026 earnings increased 18.8% year over year to 19 cents per share from 16 cents. The result topped the Zacks Consensus Estimate of 18 cents by 5.6%.
Total revenues rose 31.3% to $368.44 million and exceeded the consensus mark of $353 million by 4.4%. Both measures kept rapid growth at the center of the quarterly results.
CAVA Traffic Drives a 9% Same-Store GainSame-restaurant sales increased 9% in the quarter. Guest traffic contributed 5.3 percentage points, exceeding the 3.7-point contribution from menu price and product mix.
That traffic-led mix matters because management said it has no intention of changing pricing in the near future. Guest growth therefore remains central to supporting comparable sales without greater reliance on price increases.
CAVA Keeps Its 75-77 Opening Plan IntactCAVA opened 17 net new restaurants and ended the quarter with 476 locations, up 19.6% year over year. New restaurant productivity remained above 100%, and management reaffirmed guidance for 75-77 net new openings in fiscal 2026.
Chipotle Mexican Grill, Inc. (CMG - Free Report) opened 100 company-owned restaurants in its second quarter, underscoring unit development as a growth lever for another fast-casual operator. Shake Shack Inc. (SHAK - Free Report) opened 16 company-operated Shacks and 11 licensed Shacks in its second quarter, also expanding its footprint.
CAVA Margin Pressure Clouds the Revenue BeatRestaurant-level profit increased 28.1% year over year to $93.81 million, but restaurant-level profit margin declined 60 basis points to 25.7%. Higher sales therefore did not produce margin expansion.
Food, beverage and packaging costs rose 50 basis points to 30% of CAVA revenues, largely because of salmon input costs. Labor costs increased 30 basis points to 25.3% on an incremental 3% wage investment, while other operating expenses rose 40 basis points to 12.8% on a higher third-party delivery mix.
CAVA Sales Rebound After Food-Safety ConcernsIndustry concerns around the Cyclospora outbreak pressured same-restaurant sales around quarter-end even though CAVA said it did not source leafy greens from Mexico or serve iceberg lettuce. Trends then improved sequentially and most recently recovered to the mid-single digits.
Management maintained fiscal 2026 same-restaurant sales growth guidance of 4.5%-6.5%. The outlook incorporates the disruption experienced to date as well as macroeconomic and geopolitical uncertainty, making the sales rebound important for the second half.
CAVA's Growth Score Outshines Other SignalsThe bottom line is that CAVA's quarterly beat reinforced its traffic and expansion story, but cost pressure is limiting margin flow-through. Maintaining the full-year outlook keeps sales, openings and restaurant-level profitability in focus.
CAVA currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Value Score of F, Momentum Score of F and VGM Score of D. The Growth Score points to favorable growth characteristics, while the Value and Momentum scores signal weaker characteristics in those styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The VGM Score combines value, growth and momentum characteristics, so its D grade tempers the strength of the Growth Score. With a Zacks Rank #3 and mixed Style Scores, investors may want to balance CAVA's operating growth against margin pressure, valuation and near-term momentum rather than treating the earnings beat as a stand-alone signal.
Key Takeaways CAVA's revenue rose 31.3% and same-restaurant sales gained 9%, keeping growth central to its investment case.CAVA ended the quarter with 476 locations, $435.6M in cash and investments, and no debt outstanding.CAVA's 5.17 forward P/S premium faces margin pressure as restaurant-level margin fell 60 basis points. CAVA Group, Inc. (CAVA - Free Report) is expanding quickly as traffic growth and cash generation strengthen its operating case. The harder question is whether that growth can support a valuation that remains well above industry and sector levels.
For investors weighing a new position, the balance is mixed. Restaurant expansion and comparable sales remain favorable, but margin pressure and demanding expectations leave less room for execution setbacks.
CAVA's Sales Growth Keeps the Bull Case AliveFiscal second-quarter 2026 revenues increased 31.3% year over year to $368.44 million, while same-restaurant sales rose 9%. Guest traffic contributed 5.3% and menu price and product mix added 3.7 percentage points.
The Zacks Consensus Estimate for fiscal 2026 sales is $1.503 billion, compared with $1.180 billion in fiscal 2025. That keeps top-line expansion at the center of the investment case.
CAVA's Unit Economics Support ExpansionAverage unit volume increased to $3.09 million from $2.94 million a year earlier, and new restaurant productivity remained above 100%. CAVA opened 17 net new restaurants and ended the quarter with 476 locations, up 19.6% year over year.
CAVA also had about $435.6 million of cash and investments, no debt outstanding and $44.8 million of free cash flow through the first 28 weeks of fiscal 2026. Management maintained its plan for 75-77 net new openings for fiscal 2026.
CAVA's Premium Multiples Demand Strong ExecutionCAVA trades at a forward 12-month price-to-sales ratio of 5.17, compared with 3.16 for its Zacks sub-industry and 1.51 for the broader Zacks sector. The multiple is below CAVA's two-year median of 6.83, but the relative premium raises the cost of operational disappointment.
Peer results reinforce the execution test. Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter 2026 comparable restaurant sales growth of 2.2% and a restaurant-level operating margin of 25.2%. Shake Shack Inc. (SHAK - Free Report) posted same-Shack sales growth of 3.5% and a restaurant-level profit margin of 23.0% in its latest quarter.
CAVA Margin Risks Complicate the Upside CaseCAVA's restaurant-level profit increased 28.1% to $93.81 million, but restaurant-level profit margin declined 60 basis points to 25.7%. Food, beverage and packaging costs rose 50 basis points to 30% of CAVA revenues, while labor costs increased 30 basis points to 25.3%.
Management continues to expect a restaurant-level profit margin of 23.7%-24.3% for fiscal 2026. The outlook reflects fuel surcharges, the partial rollout of pre-marinated chicken and continued wage investments. Management also has no intention of changing pricing in the near future.
CAVA's Style Mix Favors Growth Over ValueThe bottom line is that CAVA's expansion, traffic and liquidity support the growth case, but its valuation premium and margin pressure argue against relying on growth alone. The Zacks Consensus Estimate for current fiscal-year earnings has moved 1.7% lower over the past four weeks, adding another point for investors to monitor.
CAVA currently carries a Zacks Rank #3 (Hold), with a Growth Score of A, Value Score of F, Momentum Score of F and VGM Score of D. The Growth Score indicates favorable growth characteristics, while the weaker Value and Momentum scores and combined VGM grade temper that strength. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Zacks Rank #3 does not provide the same favorable short-term signal as a #1 or #2 rank. The current mix is more consistent with a wait-and-evaluate stance than an unqualified buy case, with traffic, margin execution and valuation remaining key variables.
Explore the exciting world of Cava (CAVA +3.10%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
CAVA Group (NYSE:CAVA) shares jumped 12.7% after the fast-casual chain beat second-quarter estimates on both revenue and earnings, with same-restaurant sales climbing 9% and easing investor concerns over a recent cyclospora-linked slowdown in the sector.
Revenue rose 31.3% year-over-year to $365.4 million, topping estimates of $361 million, while adjusted earnings per share came in at $0.19, ahead of the $0.18 consensus. Guest traffic increased 5.3%, the company said.
Adjusted EBITDA rose 30% to $54.7 million, beating estimates of $52.1 million, and net income increased 25.3% to $23 million versus estimates of $21.9 million.
Restaurant-level profit rose 28.1% to $93.8 million, though restaurant-level profit margin slipped 60 basis points to 25.7%.
The company opened 17 net new restaurants in the quarter, bringing its total to 476, and reported free cash flow of $44.8 million. Digital sales made up 39% of revenue.
CAVA affirmed its full-year guidance, projecting adjusted EBITDA of $181 million to $191 million, same-restaurant sales growth of 4.5% to 6.5%, and restaurant-level profit margin of 23.7% to 24.3%. The company still expects to open 75 to 77 net new restaurants this year, with pre-opening costs of $22 million to $22.5 million.
Analysts at Jefferies said quarter-to-date trends were better than feared, with cyclospora-related headwinds moderating after same-restaurant sales bottomed in the "flat to slightly positive" range in mid-to-late July before recovering toward mid-single-digit percentage growth in the most recent week.
Jefferies attributed the traffic gains partly to the launch of a glazed salmon menu item, which is set to run through year-end, alongside continued demand across income cohorts and higher spending on premium items, sides and beverages.
Shares of CAVA Group (CAVA +14.24%) climbed on Wednesday after the Mediterranean-style restaurant chain's healthy sales helped to assuage investors' fears that the Cyclospora outbreak would weigh on its performance.
Image source: CAVA Group.
Expansion plans remain on track CAVA's revenue jumped 31% year over year to $365 million in its fiscal second quarter, which ended on July 12.
The fast-casual chain opened 17 new restaurants during the quarter and a total of 94 over the past year, bringing its total to 476 locations.
CAVA's same-restaurant sales, which include revenue from stores open for at least one year, increased 9%, fueled by a 5.3% rise in guest traffic.
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Notably, CAVA's average sales per restaurant, a metric known as average unit volume, rose to 7% to $3.1 million. That impressive performance places it on par with industry leader Chipotle Mexican Grill.
All told, CAVA's earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 30% to $55 million.
Cyclospora's impact could be more moderate than expected CAVA expects to open a total of 75 to 77 restaurants in 2026. Management projects full-year adjusted EBITDA of $181 million to $191 million, driven by these store openings and same-restaurant sales growth of 4.5% to 6.5%.
During a conference call with analysts, CEO Brett Schulman helped to calm investors' fears that the Cyclospora outbreak would weigh heavily on CAVA's business.
"While we do not source leafy greens from Mexico and do not serve iceberg lettuce on our menu, exiting Q2, we saw near-term sales impacts related to broad concerns around lettuce and fresh produce consumption due to the Cyclospora outbreak," Schulman said. "We have since seen same-restaurant sales begin to rebound, a testament to the underlying strength of our long-term brand proposition."
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cava Group and Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
Cava Group Inc.'s sales rose faster than expected due to increased traffic and customers buying higher-priced proteins and extras such as pita chips. Bloomberg's Michael Halen joins to discuss this as well as Brinker's earnings.
Cava co-founder and CEO Brett Schulman says the company has not been impacted by the cyclospora outbreak. Speaking on "Bloomberg The Close," Schulman also comments on recent dining trends and the company's growth outlook.
Cava Group (CAVA - Free Report) reported $368.44 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 31.3%. EPS of $0.19 for the same period compares to $0.16 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $353.31 million, representing a surprise of +4.28%. The company delivered an EPS surprise of +5.56%, with the consensus EPS estimate being $0.18.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cava performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
End of period CAVA Restaurants: 476 compared to the 478 average estimate based on seven analysts.CAVA Same Restaurant Sales Growth: 9% compared to the 7.2% average estimate based on seven analysts.Occupancy as a percentage of CAVA Revenue: 6.3% versus the five-analyst average estimate of 6.5%.New CAVA restaurant openings, including converted Zoes Kitchen locations: 17 compared to the 17 average estimate based on four analysts.Revenue- CAVA Restaurant: $365.43 million compared to the $355.61 million average estimate based on seven analysts. The reported number represents a change of +31.3% year over year.Revenue- Other: $3 million compared to the $2.59 million average estimate based on six analysts. The reported number represents a change of +26.9% year over year.Restaurant-Level profit- CAVA: $93.81 million versus $92.32 million estimated by four analysts on average.Restaurant-Level profit- Other: $1.77 million versus $1.68 million estimated by three analysts on average.View all Key Company Metrics for Cava here>>>
Shares of Cava have returned -13.1% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
CAVA (CAVA) shares rallied over 10% Wednesday morning after posting an earnings beat that wowed Wall Street. @investopedia's Caleb Silver explains why the report is so significant and the trends it suggests are ahead for the restaurant industry.
Key Takeaways CAVA's Q2 EPS rose 18.8% to $0.19 as revenues climbed 31.3% and same-restaurant sales gained 9%.CAVA opened 17 net new restaurants, while guest traffic grew 5.3% and average unit volume reached $3.09M.CAVA kept its 2026 outlook for 75-77 new openings and 4.5%-6.5% same-restaurant sales growth. CAVA Group, Inc. (CAVA - Free Report) delivered earnings of $0.19 per share in the second quarter of fiscal 2026, up 18.8% from $0.16 a year ago and surpassing the Zacks Consensus Estimate of $0.18 by 5.6%. Total revenues rose 31.3% year over year to $368.44 million and beat the consensus mark of $353 million by 4.4%.
Results reflected continued restaurant expansion and healthy guest demand. CAVA opened 17 net new restaurants, while same restaurant sales increased 9%, including Guest Traffic growth of 5.3%.
CAVA Unit Growth Expands Restaurant SalesThe CAVA unit’s revenues increased 31.3% year over year to $365.43 million in the fiscal second quarter. The increase primarily reflected contributions from 94 net new CAVA restaurant openings during or subsequent to the second quarter of fiscal 2025, along with higher sales at restaurants in the comparable base.
Menu price and product mix contributed 3.7 percentage points to same restaurant sales. Average unit volume rose to $3.09 million from $2.94 million a year earlier. The company ended the quarter with 476 CAVA restaurants, up 19.6% year over year, while new restaurant productivity remained above 100%.
CAVA Group Sees Margin Pressure From CostsCAVA’s restaurant-level profit increased 28.1% year over year to $93.81 million. However, restaurant-level profit margin contracted 60 basis points to 25.7%, reflecting a less favorable cost mix despite strong restaurant sales.
Food, beverage and packaging costs rose 50 basis points to 30.0% of revenues, largely because of input costs tied to the Pomegranate Glazed Salmon launch. Labor and related costs increased 30 basis points to 25.3%, reflecting an incremental 3% wage investment. Occupancy improved 50 basis points to 6.3%, while other operating expenses increased 40 basis points to 12.8% on a higher mix of third-party delivery.
CAVA Generates Strong Cash Flow Through Q2CAVA paired growth with stronger cash generation through the second quarter of fiscal 2026. Net cash provided by operating activities increased 36.0% year over year to $134.5 million from $98.9 million, primarily reflecting improved operating performance and favorable working capital changes. Purchases of property and equipment totaled $89.7 million, resulting in year-to-date free cash flow of $44.8 million, up from $21.9 million a year ago.
Liquidity remained solid at the end of the fiscal second quarter. CAVA held $322.8 million in cash and cash equivalents and $112.8 million in fixed-income investments, representing approximately $435.6 million of combined cash and investments. The company had no borrowings under its $150 million revolving credit facility and had $149.1 million of available borrowing capacity, net of $0.9 million in outstanding letters of credit.
CAVA Maintains FY26 Outlook Amid Sales ReboundCAVA reiterated its fiscal 2026 outlook for 75-77 net new restaurant openings and same restaurant sales growth of 4.5%-6.5%. The company continues to expect a restaurant-level profit margin of 23.7%-24.3%, pre-opening costs of $22.0-$22.5 million and adjusted EBITDA of $181-$191 million.
Management said industry concerns around the Cyclospora outbreak pressured same restaurant sales around quarter-end, but trends improved sequentially and most recently recovered to the mid-single digits. The outlook also incorporates expected fuel surcharges, the partial rollout of pre-marinated chicken and continued wage investments, while management indicated fiscal fourth-quarter restaurant-level margins historically decline by close to 300 basis points from the fiscal third quarter because of seasonality.
CAVA’s Zacks Rank & Key PicksCAVA currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.
BJ's Restaurants, Inc. (BJRI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has surged 72.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each.
Five Below, Inc. (FIVE - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 24.3% year to date.
The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 24.8% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 18.2% and 57.9%, respectively, from the prior-year levels.
CAVA Group, Inc. (NYSE:CAVA) drew bullish analyst reactions after its second-quarter results topped expectations, with analysts pointing to resilient traffic, strong new-store performance and a faster-than-feared recovery from recent food-safety concerns.
CAVA reported second-quarter revenue of $368.44 million. CAVA Revenue rose 31.3% year over year to $365.43 million, topping the $360.53 million analyst estimate. Diluted earnings of 19 cents per share also beat the 18-cent estimate. Same-restaurant sales increased 9%, including 5.3% traffic growth.
Analysts, however, took different approaches to CAVA’s valuation after the report. RBC Capital Markets raised its price forecast, while TD Cowen lowered its forecast despite keeping CAVA among its top restaurant picks.
CAVA Business ‘Firing On All Cylinders’, RBC SaysRBC Capital Markets analyst Logan Reich reiterated an Outperform rating and raised the price forecast to $95 from $90.
Reich said CAVA’s second-quarter results came in ahead of expectations, while quarter-to-date trends were “better than feared.” Same-store sales improved each week following the initial impact from Cyclospora-related publicity and reached the mid-single digits in the latest week.
The analyst said the food-safety impact appeared less severe than investors feared. CAVA’s 9% same-store sales growth topped RBC’s expectations and the Street’s 7.4% estimate. Traffic rose 5.3%, while the salmon launch helped drive customer frequency and attract new customers.
RBC also highlighted new-store productivity. New restaurants continue to outperform management’s expectations for average unit volumes and margins, while older restaurant vintages are posting strong comparable sales. The firm said those trends suggest CAVA has enough consumer demand to support both greater density in existing markets and expansion into new ones.
RBC said CAVA’s decision to maintain its full-year outlook despite 9.4% same-store sales growth in the first half appears conservative. The company maintained its 2026 forecast for 4.5% to 6.5% same-restaurant sales growth and adjusted EBITDA of $181 million to $191 million.
TD Cowen Cuts CAVA Forecast To $85 — But Keeps It A Top PickTD Cowen took a more cautious view on valuation but remained bullish on CAVA’s underlying business.
The firm maintained its Buy rating but lowered its price forecast to $85 from $100. TD Cowen called CAVA a top pick and said investor sentiment had become “too negative.”
The analyst maintained a 7% same-store sales growth estimate for 2026, above CAVA’s guidance range. TD Cowen said recent Cyclospora publicity caused only a modest disruption and argued that the pace of the subsequent sales recovery, strong second-quarter performance and additional sales levers could put CAVA back on a positive estimate-revision path.
TD Cowen noted that CAVA’s 9% second-quarter same-store sales growth was the strongest among restaurants reporting during the June-quarter earnings season. Adjusted EBITDA of $54.7 million also exceeded the firm’s $52.4 million estimate.
The lower price forecast was not driven by a weaker operating outlook. TD Cowen maintained its 2026 adjusted EBITDA estimate at $192 million, slightly above the top end of management’s guidance. Instead, the firm cited higher interest rates and lower restaurant-industry valuation multiples.
CAVA entered the quarter with 476 restaurants after opening 17 net new locations. The company plans to open 75 to 77 restaurants in 2026 as it pushes into new markets, including Las Vegas in the second half of the year and the San Francisco Bay Area in 2027.
CAVA Stock Price Activity: CAVA Group shares were up 10.71% at $67.32 at the time of publication Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
Cava Group (CAVA +14.16%) is known for its highly popular, fast-casual Mediterranean restaurant chains. Focusing on healthy eating options and offering ample international growth opportunities, the business has flourished over the years.
Recently, it posted its latest earnings, which came in better than expected by analysts. The growth stock has been rallying on the news. Could it be heading even higher, and is now a good time to buy it?
Image source: Getty Images.
Cava's business continues to do well in Q2 On Tuesday, Cava released its quarterly numbers for the period ending July 12. The results were encouraging as sales were up by 31% year over year, totaling $365.4 million -- analysts were expecting just $360 million. Same-restaurant sales growth was 9%, a good sign that the business is doing well organically, as that metric only considers restaurants that were open a year ago and excludes the impact of new locations. Analysts were anticipating organic growth of just 7.1%.
While there have been worries that the cyclospora outbreak might weigh on not only the business but also the industry as a whole, the company's Chief Financial Officer, Tricia Tolivar, says the effects of that may not prove to be significant: "Concerns around the broader impacts of the cyclospora outbreak have begun to ease."
For the full year, the company anticipates a slight slowdown, with same-restaurant sales growth expected between 4.5% and 6.5%. However, that's still a fairly strong rate in the industry, especially given the current macroeconomic challenges and uncertainty.
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Is Cava's stock a good buy right now? For much of the year, Cava's stock has struggled, but with recent earnings giving it a boost, it's on a positive trajectory once again. Year-to-date, it's up around 18%.
The problem with Cava's stock is that its valuation was already high to begin with, which means investors are paying for a lot of future growth. Its diluted per-share profit this past quarter was $0.19, and if that were maintained for a full year, it would equate to $0.76 over a 12-month time frame. With its share price at around $70 right now, that means it's trading at an earnings multiple of more than 90 -- assuming its earnings stay at around the same level. That's a rich premium even if its earnings were to rise higher, which is why I think Cava's stock might be too pricey to buy.
This is a stock worth watching and keeping on a watch list, and it may be worth buying in the future, but at its current valuation, it looks too expensive.
CAVA Group (NYSE:CAVA) shares jumped 12.7% after the fast-casual chain beat second-quarter estimates on both revenue and earnings, with same-restaurant sales climbing 9% and easing investor concerns over a recent cyclospora-linked slowdown in the sector.
Revenue rose 31.3% year-over-year to $365.4 million, topping estimates of $361 million, while adjusted earnings per share came in at $0.19, ahead of the $0.18 consensus. Guest traffic increased 5.3%, the company said.
Adjusted EBITDA rose 30% to $54.7 million, beating estimates of $52.1 million, and net income increased 25.3% to $23 million versus estimates of $21.9 million.
Restaurant-level profit rose 28.1% to $93.8 million, though restaurant-level profit margin slipped 60 basis points to 25.7%.
The company opened 17 net new restaurants in the quarter, bringing its total to 476, and reported free cash flow of $44.8 million. Digital sales made up 39% of revenue.
CAVA affirmed its full-year guidance, projecting adjusted EBITDA of $181 million to $191 million, same-restaurant sales growth of 4.5% to 6.5%, and restaurant-level profit margin of 23.7% to 24.3%. The company still expects to open 75 to 77 net new restaurants this year, with pre-opening costs of $22 million to $22.5 million.
Analysts at Jefferies said quarter-to-date trends were better than feared, with cyclospora-related headwinds moderating after same-restaurant sales bottomed in the "flat to slightly positive" range in mid-to-late July before recovering toward mid-single-digit percentage growth in the most recent week.
Jefferies attributed the traffic gains partly to the launch of a glazed salmon menu item, which is set to run through year-end, alongside continued demand across income cohorts and higher spending on premium items, sides and beverages.
CAVA Group (CAVA) is experiencing a notable surge today following a Q2 earnings report that exceeded expectations. The Mediterranean fast-casual chain not only
CAVA Group (CAVA) rose 11.38% premarket after the Mediterranean fast-casual chain reported second-quarter diluted earnings of $0.19 per share on revenue of $368
Investors Are Buying Into Sweetgreen Again—Should They?CAVA Group NYSE: CAVA reported second-quarter 2026 revenue growth of 31.3% as same-restaurant sales increased 9%, supported by 5.3% traffic growth and continued strength in new restaurant openings.
Revenue rose to $365.4 million, while net income increased to $23 million from $18.4 million in the prior-year quarter. Diluted earnings per share were $0.19, compared with $0.16 a year earlier. Adjusted EBITDA increased 30% to $54.7 million.
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CAVA Group’s Stock Looks Delicious After Strong Earnings“Our second quarter results underscore the continued strength of our category-defining brand and the resonance of our value proposition with today’s consumer,” Co-Founder and CEO Brett Schulman said on the company’s earnings call.
Restaurant Growth and Sales Trends CAVA opened 17 net new restaurants during the quarter, ending the period with 476 locations across 29 states and Washington, D.C. The company said new restaurant productivity remained above 100%, while systemwide average unit volumes reached $3.1 million.
Shake Shack Stock Gets Shaken After Earnings MissThe chain expanded into Indiana and Ohio during the quarter and plans to enter Las Vegas in the second half of 2026. CAVA also said it expects to expand into the Bay Area in 2027.
Chief Financial Officer Tricia Tolivar said the company’s new-unit performance was broad-based across geographies and restaurant formats. She added that the 2024 restaurant cohort has produced double-digit same-restaurant sales and represents the company’s highest-performing vintage.
CAVA maintained its full-year outlook for 75 to 77 net new restaurant openings and same-restaurant sales growth of 4.5% to 6.5%. Tolivar said the low end of that sales range would imply slightly negative same-restaurant sales, while the upper end would imply mid-single-digit growth.
She said the company’s most recent same-restaurant sales performance had recovered to the mid-single digits after concerns over a Cyclospora outbreak affected sales earlier in the third quarter. CAVA said it does not source leafy greens from Mexico and does not serve iceberg lettuce, but it saw near-term sales pressure from broad consumer concerns about lettuce and fresh produce.
Schulman said CAVA had not seen immediate effects from a separate Salmonella outbreak and does not source from associated farms. The company is continuing to consult with its food safety advisory council, he said.
Margins Reflect Food, Labor and Delivery Costs Restaurant-level profit rose 28.1% to $93.8 million, though restaurant-level margin declined to 25.7% of revenue from 26.3% a year earlier.
Food, beverage and packaging costs represented 30% of revenue, up 50 basis points year over year, largely due to costs associated with the launch of salmon. Labor and related costs were 25.3% of revenue, up 30 basis points, driven in part by a 3% wage investment for team members. Occupancy and related expenses improved by 50 basis points to 6.3% of revenue due to sales leverage. Other operating expenses increased 40 basis points to 12.8% of revenue, primarily because of a higher mix of third-party delivery. Tolivar said food, beverage and packaging costs are expected to increase as a percentage of revenue through the remainder of the year because of fuel surcharges and the rollout of pre-marinated chicken. The company plans to roll out the chicken product across restaurants during the balance of 2026 and into 2027.
Schulman said the pre-marinated chicken is intended to reduce manual kitchen preparation, improve consistency and allow restaurant teams to devote more time to guest service rather than requiring immediate labor-hour reductions.
CAVA reiterated its full-year restaurant-level margin outlook of 23.7% to 24.3% and Adjusted EBITDA guidance of $181 million to $191 million, including pre-opening costs. The company expects fourth-quarter restaurant margins to be seasonally lower than third-quarter margins.
Menu Innovation, Loyalty and Operations During the quarter, CAVA launched Pomegranate Glazed Salmon nationwide, its first seafood offering. Schulman said guest reception was strong and performance was in line with expectations. The item increased the rate of new customers and helped drive purchase frequency among loyalty members who ordered salmon, according to the company.
CAVA plans to retain salmon through the end of 2026. It also recently completed a market test of Roasted Garlic Shrimp and said the product is proceeding through its testing process. Planned seasonal offerings in the second half include a new dressing and another pita chip flavor.
The company continued developing its loyalty program through the launch of Flavor Passport, an in-app feature intended to encourage customers to explore menu offerings and earn rewards. Tolivar said the loyalty member base is growing faster than the company’s restaurant count.
CAVA also plans to launch a second catering market test later this fall, expanding beyond its initial test in Houston. Schulman said the company is focused on understanding production capacity, load balancing and restaurant execution before a broader rollout.
On staffing, the company’s assistant general manager roles have been rolled out to 70% of the fleet. Schulman said the initial rollout has been associated with improved team-member and guest satisfaction, as well as improved speed of service.
Liquidity and Capital Investment CAVA ended the quarter with no debt outstanding, $435.6 million in cash and investments, and an undrawn $150 million revolving credit facility. Cash flow from operations rose to $134.5 million through the second quarter, compared with $98.9 million in the prior-year period, while year-to-date free cash flow totaled $44.8 million.
Tolivar said free cash flow typically becomes less favorable in the latter half of the year as the company invests in its development pipeline. CAVA also expects to invest roughly $5 million to $10 million in restaurant enhancements, including certain Project Soul refreshes and potential grill expansions to support demand at some locations.
About CAVA Group (NYSE:CAVA)CAVA Group, Inc NYSE: CAVA is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.
Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe's Kitchen.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Cava Group shares are climbing with conviction. What’s behind CAVA gains? Cava reported second-quarter revenue of $365.43 million, beating the consensus estimate of $360.53 million, according to Benzinga Pro. The company posted adjusted earnings of 19 cents per share, beating estimates of 18 cents per share.
Total revenue was up 31.3% year-over-year on same restaurant sales growth of 9%, driven by guest traffic growth of 5.3%.
“Our second quarter results underscore the continued strength of our category-defining brand and the resonance of our value proposition with today’s consumer,” said Brett Schulman, co-founder and CEO of Cava Group.
The company opened 17 new restaurants during the quarter, bringing total locations up to 476, up 19.6% year-over-year. Cava ended the period with $322.76 million in cash and cash equivalents.
Cava reaffirmed expectations for 2026 same-restaurant sales growth to be between 4.5% and 6.5%. The company also affirmed its adjusted EBITDA guidance of $181 million to $191 million, as well as expectations for opening 75 to 77 new restaurants this year.
CAVA Stock Climbs After The CloseCava shares were up 6.84% in after-hours Tuesday, trading at $65 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
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Cava Group (CAVA - Free Report) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.56%. A quarter ago, it was expected that this Mediterranean restaurant chain would post earnings of $0.17 per share when it actually produced earnings of $0.2, delivering a surprise of +17.65%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Cava, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $368.44 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.28%. This compares to year-ago revenues of $280.61 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cava shares have added about 4.9% since the beginning of the year versus the S&P 500's gain of 13.3%.
What's Next for Cava?While Cava has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cava was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.14 on $360.93 million in revenues for the coming quarter and $0.54 on $1.49 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Jack In The Box (JACK - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12.
This burger chain is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of -11.8%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Jack In The Box's revenues are expected to be $260.04 million, down 21.9% from the year-ago quarter.
WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA) (“CAVA Group” or the “Company”), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial results for its fiscal second quarter ended July 12, 2026. “Our second quarter results underscore the continued strength of our category-defining brand and the resonance of our value proposition with today's consumer,” said Brett Schulman, Co-Founder and CEO. “Same r.
HomeIndustriesHotels/Restaurants/CasinosEarnings ResultsEarnings ResultsThe restaurant chain says it has also benefited from ‘premium proteins’ like pomegranate-glazed salmonAug. 11, 2026, 4:41 p.m. ET
Cava Group says some diners have switched up their orders to avoid lettuce, but the fast-casual chain has still been able to sport sales growth despite a summer of food-safety scares impacting the restaurant industry writ large.
“We did see a shift into more grain bases, into items like pitas, and other items that they felt more comfortable with given the broader industry issues,” CEO Brett Schulman told MarketWatch.
Cava Group (NYSE: CAVA) has been one of the brightest stories in the restaurant industry.
The Mediterranean fast-casual chain is similar to Chipotle in a number of ways, with a minimalist design and a customizable menu that features both bowls and handheld pitas, similar to burritos. Cava also benefits from having Ron Shaich, the founder of Panera, as one of its early investors.
Since its 2023 IPO, the company has reported explosive growth, often posting comparable sales growth in the double digits. However, in more recent quarters, its momentum has slowed in line with a broader pullback in the fast-casual industry as inflation wears on consumers, and the impact of the “K-shaped economy” has put more pressure on young adults.
Cava is due up to report second-quarter earnings after hours on Tuesday. Let’s take a look at what to expect and why the stock could gain on the news.
Image source: The Motley Fool.
Is Cava ready for a comeback?Year-to-date, Cava stock is up just 6%, trailing the S&P 500. However, the stock has fallen sharply from its high this year in April, even as the broad market has soared, due to pressure on the industry amid fears of rising interest rates and inflation.
For the second-quarter report, analysts are expecting 28.3% revenue growth to $360.1 million, and generally accepted accounting principles (GAAP) earnings per share to improve from $0.16 to $0.18.
Cava delivered strong first-quarter results, and the stock briefly popped on that earnings report before sliding through most of June and July.
The company is one of the last in its sector to report earnings, so its peer group offers some guidance as to what to expect. Chipotle, for example, reported its strongest comparable sales growth in six quarters in the second quarter, though it was up just 2.2%. The improvement seemed to stem from menu innovations, more catering opportunities, and deeper engagement with its rewards program.
Some economists have begun referring to the current economy as the “little treat economy,” a trend that could favor Cava. The term refers to Gen Z and millennials spending on low-cost indulgences, like a meal out, since they can’t afford larger expenses like buying a home.
One risk to watch out forFood safety concerns are back in the news following a cyclospora outbreak that began in mid-July and was linked to iceberg lettuce from Taylor Farms used at Taco Bell locations, as well as a salmonella outbreak linked to jalapeños used at Chipotle stores in Minnesota.
Sweetgreen slashed its full-year guidance due to the cyclospora outbreak, even though its operations weren’t directly affected, as it doesn’t even use iceberg lettuce.
According to location intelligence firm Placer.ai, there is evidence that the cyclospora outbreak weighed on foot traffic at Cava for at least a few days; however, Placer.ai also said that foot traffic to Cava stores, including new locations, rose 24.6% in the quarter, boding well for its results.
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Trading near its year-to-date low, Cava appears to offer a good entry point, as the business is still growing rapidly and has significant long-term potential.
Now trading at less than six times sales, the stock looks well-priced, especially if it can continue to deliver strong comparable sales growth, as there’s ample room in the market for the company to expand. If it delivers another beat-and-raise report, the stock is a good bet to pop on Wednesday.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Cava Group (CAVA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Cava currently has an average brokerage recommendation (ABR) of 1.85, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.85 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 56.7% and 6.7% of all recommendations.
Brokerage Recommendation Trends for CAVA
Check price target & stock forecast for Cava here>>>
While the ABR calls for buying Cava, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in CAVA?Looking at the earnings estimate revisions for Cava, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $0.54.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Cava. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Cava.
Cava Group (CAVA - Free Report) closed at $62.23 in the latest trading session, marking a -5.95% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.18%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Shares of the Mediterranean restaurant chain witnessed a loss of 2.1% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 7.23%, and the S&P 500's gain of 3.33%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. The company plans to announce its earnings on August 11, 2026. The company's upcoming EPS is projected at $0.17, signifying a 6.25% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $353.31 million, up 25.91% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and a revenue of $1.49 billion, representing changes of 0% and +26.08%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.37% fall in the Zacks Consensus EPS estimate. Currently, Cava Group is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Cava Group currently has a Forward P/E ratio of 121.86. This valuation marks a premium compared to its industry average Forward P/E of 20.44.
Also, we should mention that CAVA has a PEG ratio of 4.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Key Takeaways CAVA is expected to benefit from healthy traffic, strong new restaurant performance and same-store sales.CAVA may see support from menu innovation, digital engagement and expanding delivery capabilities.CAVA has a positive Earnings ESP ahead of its second-quarter earnings report. CAVA Group, Inc. (CAVA - Free Report) is scheduled to report second-quarter 2026 results on Aug. 11. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 17.7%.
CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 16.6%.
CAVA’s Q2 EstimatesThe Zacks Consensus Estimate for earnings is pegged at 17 cents per share, indicating a gain of 6.3% from a year ago.
The consensus mark for revenues is pegged at $353.3 million, implying an increase of 25.9% from the year-ago quarter.
Factors to Note Ahead of CAVA’s Q2 ResultsCAVA's second-quarter 2026 revenues are likely to have benefited from continued healthy guest traffic, supported by its compelling value proposition and expanding restaurant base. Management noted that second-quarter same-restaurant sales trends remained in line with the strong first-quarter performance and were tracking above its raised full-year outlook. The company is also expected to have gained from contributions of recently opened restaurants, with new units continuing to deliver productivity above 100% and average unit volumes remaining robust.
Menu innovation and customer engagement initiatives are also likely to have supported the top line. The nationwide launch of Pomegranate-Glazed Salmon, the successful return of roasted white sweet potatoes and sustained digital and loyalty engagement are expected to have encouraged repeat visits and attracted new customers. Continued improvements in third-party delivery, stronger digital ordering capabilities and broad-based demand across regions and income groups, supported by disciplined pricing and marketing efforts, are likely to have further boosted sales momentum during the quarter.
CAVA's bottom line in the second quarter is likely to have been supported by strong sales leverage from healthy comparable-sales growth and continued strength in new restaurant performance. The company is also likely to have benefited from operating efficiencies, including leverage on occupancy and G&A expenses, while investments in technology, digital capabilities and restaurant operations helped enhance execution and productivity. Although salmon, wage investments and higher energy-related costs are likely to have created margin headwinds, management's strong restaurant-level economics, disciplined cost management and robust flow-through from higher sales are likely key drivers of earnings growth.
What Does the Zacks Model Unveil for CAVA?Our proven model predicts an earnings beat for CAVA this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP: CAVA has an Earnings ESP of +20.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CAVA currently has a Zacks Rank #3.
Other Stocks Poised to Beat on EarningsHere are a few other stocks from the Zacks Retail-Wholesale sector, which, too, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
El Pollo Loco Holdings, Inc. (LOCO - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, LOCO’s earnings are expected to increase 3.6% year over year. LOCO’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 18.9%.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.8%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.
Cetera Investment Advisers lowered its holdings in shares of CAVA Group, Inc. (NYSE:CAVA – Free Report) by 18.6% in the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 45,834 shares of the company’s stock after selling 10,491 shares during the period. Cetera Investment Advisers’ holdings in CAVA Group were worth $3,708,000 as of its most recent filing with the SEC.
Several other large investors have also bought and sold shares of the business. Capital Research Global Investors increased its holdings in shares of CAVA Group by 27.2% during the fourth quarter. Capital Research Global Investors now owns 8,440,040 shares of the company’s stock worth $495,344,000 after buying an additional 1,805,174 shares in the last quarter. Marshall Wace LLP boosted its holdings in shares of CAVA Group by 689.8% during the 4th quarter. Marshall Wace LLP now owns 1,387,774 shares of the company’s stock valued at $81,448,000 after acquiring an additional 1,212,068 shares in the last quarter. Primecap Management Co. CA grew its position in CAVA Group by 1,378.3% during the 4th quarter. Primecap Management Co. CA now owns 1,260,250 shares of the company’s stock worth $73,964,000 after acquiring an additional 1,175,000 shares during the last quarter. Norges Bank acquired a new position in CAVA Group in the 4th quarter worth about $50,278,000. Finally, Morgan Stanley increased its holdings in CAVA Group by 33.7% in the 4th quarter. Morgan Stanley now owns 3,318,894 shares of the company’s stock worth $194,786,000 after purchasing an additional 835,628 shares in the last quarter. 73.15% of the stock is owned by institutional investors and hedge funds.
Insider Transactions at CAVA Group In other news, CFO Tricia K. Tolivar sold 4,969 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $89.43, for a total value of $444,377.67. Following the sale, the chief financial officer directly owned 234,931 shares of the company’s stock, valued at approximately $21,009,879.33. This represents a 2.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Theodoros Xenohristos sold 3,252 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $89.43, for a total transaction of $290,826.36. Following the sale, the insider directly owned 324,630 shares in the company, valued at $29,031,660.90. This trade represents a 0.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 91,747 shares of company stock valued at $7,970,838. 6.70% of the stock is currently owned by insiders.
CAVA Group Stock Performance CAVA stock opened at $66.13 on Thursday. The company has a market capitalization of $7.70 billion, a P/E ratio of 127.18, a price-to-earnings-growth ratio of 4.36 and a beta of 1.74. CAVA Group, Inc. has a 52-week low of $43.41 and a 52-week high of $98.79. The business has a 50-day simple moving average of $74.17 and a two-hundred day simple moving average of $77.03.
CAVA Group (NYSE:CAVA – Get Free Report) last issued its quarterly earnings data on Tuesday, May 19th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.03. CAVA Group had a return on equity of 7.92% and a net margin of 4.79%.The business had revenue of $438.27 million for the quarter, compared to analysts’ expectations of $360.89 million. During the same period last year, the business earned $0.22 EPS. The business’s revenue was up 32.1% on a year-over-year basis. As a group, sell-side analysts forecast that CAVA Group, Inc. will post 0.54 earnings per share for the current fiscal year.
Analyst Upgrades and Downgrades Several equities research analysts recently commented on CAVA shares. Freedom Capital upgraded shares of CAVA Group to a “hold” rating in a research report on Wednesday, July 1st. BMO Capital Markets set a $100.00 price target on shares of CAVA Group in a research note on Wednesday, May 20th. Benchmark lifted their price target on shares of CAVA Group from $80.00 to $110.00 and gave the stock a “buy” rating in a report on Monday, April 20th. UBS Group raised shares of CAVA Group from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $85.00 to $90.00 in a research note on Wednesday, June 10th. Finally, Telsey Advisory Group raised their target price on CAVA Group from $92.00 to $95.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 20th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $93.04.
Check Out Our Latest Stock Analysis on CAVA Group
CAVA Group Profile (Free Report)
CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.
Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.
Featured Articles Five stocks we like better than CAVA Group SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding CAVA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CAVA Group, Inc. (NYSE:CAVA – Free Report).
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Wall Street analysts forecast that Cava Group (CAVA - Free Report) will report quarterly earnings of $0.17 per share in its upcoming release, pointing to a year-over-year increase of 6.3%. It is anticipated that revenues will amount to $353.31 million, exhibiting an increase of 25.9% compared to the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Cava metrics that are commonly tracked and projected by analysts on Wall Street.
The consensus estimate for 'Revenue- CAVA Restaurant' stands at $355.61 million. The estimate suggests a change of +27.8% year over year.
Analysts expect 'End of period CAVA Restaurants' to come in at 478 . Compared to the current estimate, the company reported 398 in the same quarter of the previous year.
The average prediction of analysts places 'Occupancy as a percentage of CAVA Revenue' at 6.5%. The estimate is in contrast to the year-ago figure of 6.8%.
Based on the collective assessment of analysts, 'New CAVA restaurant openings, including converted Zoes Kitchen locations' should arrive at 17 . The estimate compares to the year-ago value of 16 .
Analysts' assessment points toward 'Restaurant-Level profit- CAVA' reaching $92.32 million. Compared to the present estimate, the company reported $73.26 million in the same quarter last year.
View all Key Company Metrics for Cava here>>>
Over the past month, shares of Cava have returned -2.1% versus the Zacks S&P 500 composite's +3.3% change. Currently, CAVA carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Cava Group (CAVA - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on August 11, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis Mediterranean restaurant chain is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +6.3%.
Revenues are expected to be $353.31 million, up 25.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Cava?For Cava, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +20.30%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Cava will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Cava would post earnings of $0.17 per share when it actually produced earnings of $0.20, delivering a surprise of +17.65%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Cava appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Retail - Restaurants industry, Sweetgreen, Inc. (SG - Free Report) , is soon expected to post loss of $0.13 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +35%. This quarter's revenue is expected to be $193.67 million, up 4.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Sweetgreen has been revised 1.3% up to the current level. Nevertheless, the company now has an Earnings ESP of +11.54%, reflecting a higher Most Accurate Estimate.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Sweetgreen will most likely beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Veteran retail operating executive brings deep expertise in multi-unit operations, talent development, real estate and supply chain
WASHINGTON--(BUSINESS WIRE)--CAVA Group, Inc. (NYSE: CAVA), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced the appointment of Amiee Bayer-Thomas, Chief Retail Officer of Ulta Beauty, Inc., to its Board of Directors, effective July 29.
“Amiee is a seasoned operator whose leadership has always started with the people closest to the guest,” said Brett Schulman, Co-Founder and CEO of CAVA. “Having grown up in retail, she brings a grounded understanding of the store, the frontline team member and the guest. Her experience leading complex national operations, developing talent and scaling for growth will be invaluable as CAVA continues expanding. Just as importantly, her values-based approach and commitment to building strong cultures align deeply with who we are. We are thrilled to welcome Amiee to the CAVA table.”
Bayer-Thomas has more than three decades of leadership experience across specialty and department-store retail. As Chief Retail Officer of Ulta Beauty, she is responsible for store and services operations across more than 1,500 stores and over 60,000 associates, as well as real estate growth and development, store design and loss prevention.
Since joining Ulta Beauty in 2016, Bayer-Thomas has held roles of increasing responsibility, including Chief Store Operations Officer and Chief Supply Chain Officer. Her end-to-end operating experience spans the supply chain through the selling floor, with a focus on operational excellence, continuous improvement, cost discipline and developing high-performing teams. She has also led business continuity and operational response across thousands of locations during periods of significant disruption.
“CAVA has built a category-defining brand by pairing bold, vibrant food with a deeply human approach to hospitality,” said Bayer-Thomas. “I have long admired the company’s commitment to its team members, guests and communities, and I am honored to join the Board at such an exciting stage of growth. I look forward to working with the leadership team and my fellow directors to help CAVA scale its mission and bring the Mediterranean way to more people across the country.”
Prior to Ulta Beauty, Bayer-Thomas held leadership positions at JCPenney and Limited Brands across store operations, field leadership and merchandising. She serves on the Board of Directors of YWCA Metropolitan Chicago and previously served on the advisory board of Shoptalk. Bayer-Thomas holds a Bachelor of Arts in Management from the College of Saint Benedict and Saint John’s University.
About CAVA
CAVA is the category-defining Mediterranean fast-casual restaurant brand bringing together bold, healthful flavors and ingredients at scale. A founder-led company, CAVA is guided by the belief that food should taste as good as it makes you feel, and that great meals and warm Mediterranean hospitality go hand in hand. Across more than 450 restaurants in 29 states and Washington, D.C., guests can choose from an abundant selection of chef-curated or build your own bowls and pitas to meet their dietary and taste preferences. There are more than 17 billion possible ingredient combinations, featuring a variety of proteins, vegetables, signature dips such as Crazy Feta®, house-made beverages, and more. Guided by its mission to bring heart, health, and humanity to food, CAVA provides meaningful career opportunities for more than 15,000 team members and continues to invest in its people and communities. Learn more at cava.com.
Should you prioritize a global travel titan or a fast-growing restaurant disruptor? Deciding between Booking (BKNG -0.10%) and CAVA Group (CAVA -1.17%) requires weighing mature cash flows against aggressive retail expansion.
Booking is a leader in the digital travel space, providing a massive platform for hotels and flights. CAVA is a rising star in the fast-casual dining world, often compared to early-stage winners in the restaurant industry. Both companies are vying for consumer dollars, but they offer very different risk-and-reward profiles for investors today.
The case for BookingBooking operates a massive network of travel brands, including its namesake site, Priceline, and Agoda. The company connects travelers to roughly 4.5 million properties across more than 220 countries and territories. A key recent strategy involves a partnership with The Trade Desk to monetize its deep pool of traveler data through targeted advertising.
Financial performance remains robust in the travel and tourism stocks sector. In 2025, revenue reached nearly $26.9 billion, representing a 13.4% increase over the previous year. The company reported net income of nearly $5.4 billion, resulting in a healthy net margin of approximately 20%.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly -3.5x, which means total liabilities exceed total assets. The current ratio, which measures the ability to pay short-term debts with current assets, is approximately 1.3x. Free cash flow, or the cash left after capital expenditures, was approximately $9.1 billion in 2025.
The case for CAVACAVA focuses on the Mediterranean fast-casual market, operating close to 459 restaurants in the United States as of early 2026. The company reaches a diverse audience through in-person dining, digital orders, and drive-thru locations. It also generates revenue by selling its signature dips and dressings in various retail grocery stores.
Growth has been a central theme for the brand. In 2025, revenue reached approximately $1.2 billion, which was a 22.4% increase from the prior year. CAVA reported net income of roughly $63.7 million, yielding a net margin of about 5.4% for the period.
The balance sheet appears conservative as of December 2025. The debt-to-equity ratio is nearly 0.5x, indicating that total debt is less than shareholders’ equity. The current ratio is roughly 2.7x, and the company generated approximately $26.1 million in free cash flow in 2025.
Risk profile comparisonBooking faces intense pressure from large technology platforms, which use artificial intelligence (AI) to integrate travel planning directly into search results. Regulatory hurdles are also mounting, as the European Union has designated the company a gatekeeper, leading to higher compliance costs. Furthermore, any failure in its ongoing digital transformation or a significant data breach could harm its reputation and financial stability.
CAVA is currently navigating a significant shareholder lawsuit that alleges insider trading among top leadership during mid-2026. Beyond legal issues, the company must manage the risk of cannibalization as it opens new locations near existing ones. It also competes for labor and real estate against massive rivals like Chipotle Mexican Grill and McDonald's while dealing with fluctuating food costs.
Valuation comparisonBooking looks significantly cheaper on a Forward P/E basis, which measures price against future earnings estimates, though CAVA has a similar P/S ratio.
MetricBookingCAVAForward P/E18.5x119.7xP/S ratio5.6x6.5xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Both companies have maintained steady top-line growth, indicating growing demand for their services.
Travel demand has been steady over the last five years, but CAVA has been vulnerable to inflation and the squeeze on consumers’ spending power. As a leading travel booking platform, Booking.com benefits from consumers choosing to allocate more of their budgets to experiences rather than dining out or other goods.
CAVA is carving out a profitable niche by serving what appears to be a big void in fast-casual eating with its Mediterranean-focused menu.
However, I would bet on Booking’s right now. Wall Street is punishing the stock over concerns about competition from big tech giants. Still, it has a competitive advantage with its global scale, connecting guests with about 4.5 million accommodation properties. Its loyalty program also helps drive repeat bookings.
CAVA is a promising restaurant growth story, but the stock just doesn’t offer the attractive valuation that Booking’s does right now. While CAVA is expected to grow earnings at an annualized rate of 25% in the coming years, it also trades at a sky-high forward P/E of 119.
By comparison, analysts expect Booking’s earnings to grow at an annualized rate of 15%, and its stock trades at a forward earnings multiple of 18. That’s a lower PEG for Booking, potentially making it the more undervalued stock right now.
CAVA Group, Inc. (NYSE: CAVA), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced
In the latest trading session, Cava Group (CAVA - Free Report) closed at $66.44, marking a +1.65% move from the previous day. This move lagged the S&P 500's daily gain of 1.66%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 2.78%.
Prior to today's trading, shares of the Mediterranean restaurant chain had lost 18.08% lagged the Retail-Wholesale sector's gain of 0.61% and the S&P 500's loss of 1.49%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. The company's earnings report is set to go public on August 11, 2026. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 6.25% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $353.31 million, reflecting a 25.91% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $1.49 billion, which would represent changes of 0% and +26.08%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% decrease. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 120.37. This indicates a premium in contrast to its industry's Forward P/E of 20.7.
It's also important to note that CAVA currently trades at a PEG ratio of 4.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 189, placing it within the bottom 24% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Cava Group?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Cava Group (CAVA - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $0.20 a share, just 15 days from its upcoming earnings release on August 11, 2026.
CAVA has an Earnings ESP figure of +20.30%, which, as explained above, is calculated by taking the percentage difference between the $0.20 Most Accurate Estimate and the Zacks Consensus Estimate of $0.17. Cava Group is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CAVA is one of just a large database of Retail and Wholesale stocks with positive ESPs. Another solid-looking stock is Dollar Tree (DLTR - Free Report) .
Slated to report earnings on September 2, 2026, Dollar Tree holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.15 a share 37 days from its next quarterly update.
Dollar Tree's Earnings ESP figure currently stands at +2.78% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.11.
Because both stocks hold a positive Earnings ESP, CAVA and DLTR could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Bank of New York Mellon Corp raised its stake in CAVA Group, Inc. (NYSE:CAVA – Free Report) by 2.3% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 647,718 shares of the company’s stock after acquiring an additional 14,861 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.56% of CAVA Group worth $52,400,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also made changes to their positions in the stock. Los Angeles Capital Management LLC purchased a new stake in CAVA Group during the 4th quarter worth about $25,000. TD Private Client Wealth LLC raised its stake in CAVA Group by 118.2% in the 4th quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock valued at $35,000 after purchasing an additional 325 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in CAVA Group by 115.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 647 shares of the company’s stock valued at $38,000 after purchasing an additional 347 shares in the last quarter. Allworth Financial LP boosted its stake in shares of CAVA Group by 57.4% during the 4th quarter. Allworth Financial LP now owns 650 shares of the company’s stock worth $38,000 after purchasing an additional 237 shares during the last quarter. Finally, Advisors Asset Management Inc. boosted its stake in shares of CAVA Group by 53.5% during the 4th quarter. Advisors Asset Management Inc. now owns 694 shares of the company’s stock worth $41,000 after purchasing an additional 242 shares during the last quarter. 73.15% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of equities analysts have recently weighed in on the stock. Citigroup boosted their price objective on shares of CAVA Group from $75.00 to $92.00 and gave the company a “neutral” rating in a research report on Monday, May 4th. Weiss Ratings upgraded shares of CAVA Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 20th. Freedom Capital raised shares of CAVA Group to a “hold” rating in a research note on Wednesday, July 1st. KeyCorp boosted their price target on CAVA Group from $95.00 to $105.00 and gave the company an “overweight” rating in a report on Monday, April 20th. Finally, Mizuho increased their price target on CAVA Group from $72.00 to $80.00 and gave the stock a “neutral” rating in a research note on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.54.
View Our Latest Stock Report on CAVA Group
CAVA Group Stock Performance CAVA Group stock opened at $63.20 on Friday. CAVA Group, Inc. has a 1 year low of $43.41 and a 1 year high of $98.79. The firm has a 50 day moving average price of $76.92 and a 200 day moving average price of $77.29. The company has a market cap of $7.36 billion, a price-to-earnings ratio of 121.54, a PEG ratio of 4.29 and a beta of 1.69.
CAVA Group (NYSE:CAVA – Get Free Report) last posted its quarterly earnings results on Tuesday, May 19th. The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The company had revenue of $438.27 million for the quarter, compared to the consensus estimate of $360.89 million. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. CAVA Group’s revenue was up 32.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.22 earnings per share. Sell-side analysts predict that CAVA Group, Inc. will post 0.54 EPS for the current year.
Insider Buying and Selling at CAVA Group In other CAVA Group news, insider Theodoros Xenohristos sold 3,252 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $89.43, for a total transaction of $290,826.36. Following the completion of the sale, the insider owned 324,630 shares of the company’s stock, valued at approximately $29,031,660.90. The trade was a 0.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 12,490 shares of the company’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $90.00, for a total value of $1,124,100.00. Following the sale, the insider owned 98,490 shares of the company’s stock, valued at $8,864,100. This represents a 11.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 91,747 shares of company stock worth $7,970,838. 6.70% of the stock is currently owned by company insiders.
CAVA Group Profile (Free Report)
CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.
Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.
Featured Stories Five stocks we like better than CAVA Group Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding CAVA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CAVA Group, Inc. (NYSE:CAVA – Free Report).
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Cava Group (CAVA - Free Report) ended the recent trading session at $63.21, demonstrating a +1.38% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.
Shares of the Mediterranean restaurant chain witnessed a loss of 24.19% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.27%, and the S&P 500's gain of 0.42%.
The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. The company is slated to reveal its earnings on August 11, 2026. The company is predicted to post an EPS of $0.17, indicating a 6.25% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $353.13 million, indicating a 25.84% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $1.49 billion, which would represent changes of 0% and +26.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Cava Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.37% downward. At present, Cava Group boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 114.82. This expresses a premium compared to the average Forward P/E of 20.11 of its industry.
We can additionally observe that CAVA currently boasts a PEG ratio of 4.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Cava Group (CAVA - Free Report) , which belongs to the Zacks Retail - Restaurants industry, could be a great candidate to consider.
This Mediterranean restaurant chain has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 25.49%.
For the last reported quarter, Cava came out with earnings of $0.2 per share versus the Zacks Consensus Estimate of $0.17 per share, representing a surprise of 17.65%. For the previous quarter, the company was expected to post earnings of $0.03 per share and it actually produced earnings of $0.04 per share, delivering a surprise of 33.33%.
Price and EPS Surprise
For Cava, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Cava has an Earnings ESP of +20.30% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 11, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
